Sharp to Cut LCD Production for Two Months

Japanese electronics company Sharp Corp. (SHCAY) will cut its production of LCD panels as TV inventories piled up in China and the United States.

The company will reduce capacity utilization at its Sakai factory by 20%-30% for as long as two months, Reuters said, citing a report in the Japanese press. The factory makes panels of 40 inches and larger.

The move will impact companies that buy panels from Sharp, including Sony Corp. (SNE). The change will not affect supplies for Sharp's own TVs.

Sharp reaffirmed its sales forecast of 15 million TVs for fiscal 2010. That's a 47% increase from 2009.